There is a close logical connection between the concept of a safety margin and the principle of diversification. Even wi...
Current price should not be more than 1.5 times the book value last reported. A moderately low ratio of price to book va...
The investor should sell when his stock has risen to a level where the price no longer represents a bargain relative to ...
We recommend that the investor's portfolio of common stocks should be tested for quality by applying suitable standards ...
Imagine having a partner named Mr. Market who offers to buy or sell shares at a different price every day. Sometimes his...
The intrinsic value of a stock is the value justified by the facts — the assets, earnings, dividends, and definite prosp...
Confronted with the need to estimate future growth, I am ready to adopt as a rule of thumb a margin of safety of about 5...
The investor cannot prudently judge management merely by the results. He must look at management's character, their hone...
The individual investor should consistently act as an investor and not as a speculator. Investment is most intelligent w...
Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your j...
We recommend selecting stocks using quantitative criteria: earnings-to-price yield, dividend record, balance sheet stren...
The true investor does his best work in a declining market, because he seeks values. Real opportunities in stocks come w...
We suggested as a minimum requirement that the total equity be at least half the total capitalization, and that total cu...
Individuals who cannot master their emotions are ill-suited to profit from the investment process. The investor's chief ...
You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are ...
The market is there to serve you, not to guide you. It is folly to sell because the market has gone down. The real inves...
In the short run the market is a voting machine but in the long run it is a weighing machine. Price eventually converges...
The intelligent investor is a realist who sells to optimists and buys from pessimists. Investment is most successful whe...
The defensive investor will place his chief emphasis on the avoidance of serious mistakes or losses. The enterprising in...
There's no asset so good that it can't become a bad investment if bought at too high a price. And there are few assets s...
To buy when others are despondently selling and to sell when others are avidly buying requires the greatest fortitude an...
First-level thinking says, 'It's a good company; let's buy the stock.' Second-level thinking says, 'It's a good company,...
The biggest investing errors come not from factors that are informational or analytical, but from those that are psychol...
High quality assets can be risky, and low quality assets can be safe. It's not what you buy, it's what you pay. Risk mea...
The most important thing is being aware of what you don't know. We have to practice defensive investing, since many of t...
First-level thinking is simplistic and superficial, and just about everyone can do it. Second-level thinking is deep, co...
Investing requires finding situations where the risk-reward ratio is skewed in your favor. Success depends not on what y...
Being right about something isn't at all synonymous with being right about it at the right time. You can be right about ...
Risk means more things can happen than will happen. The possibility of permanent loss is the risk I worry about. Everyth...
Rule number one: most things will prove to be cyclical. Rule number two: some of the greatest opportunities for gain and...
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